Glanbia hopes to tie up co-op deal by end of August
GLANBIA expects to have a deal on its proposed joint venture with its co-op by the end of August.
Talks between the PLC part of the business and the co-op are ongoing, but are still on track to reach agreement by the end of next month at the latest.
Last month, Glanbia said it was in negotiations with the co-op to expand milk processing capacity ahead of the removal of EU milk quotas in 2015.
That is expected to see a huge spike in milk production and to that end the company is working on a joint venture to build a new processing facility on the Kilkenny-Waterford border.
The joint venture will be 60pc owned by the co-op.
Progress on the talks was revealed as Glanbia said it had agreed to buy a US nutritionals company.
In a statement, the firm said it would pay $60m (€50.1m) for Aseptic Solutions Incorporated, a California-based firm that makes protein shakes and fruit juices.
The company, which employs 175 people, will be folded into the whey protein division of Glanbia's sports nutritionals business.
The company said the acquisition fitted in with its nutritionals growth strategy and would "strengthen Glanbia Nutritional Ingredient Technologies by expanding its end-to-end solutions capability as an ingredients supplier, formulator and end product manufacturer".
"The acquisition enhances the Glanbia portfolio by complementing and enhancing existing ingredient solution capabilities," the firm added.
Davy Stockbrokers John O'Reilly said the purchase, which is being funded out of existing facilities, would bring the process of keeping the sterility of food in house.
"Heretofore, Glanbia outsourced this requirement. Having this capability in-house will enable Glanbia to extend its beverage nutritional offerings and offer more consumer packaged opportunity for its whey protein derivatives," he said.
Glanbia closed in Dublin at €6.15, up 0.82pc.